Get a Mortgage Rate-Hold NOW !

[MortgageQueen]

Rates have been bouncing up and down this past month but the bond market (which rates are based upon) has been moving straight up.
Rates will likely rise this summer, and in fact most Lenders have raised their rates already. If you are refinancing or purchasing in the next 90-120 days, you should get a rate hold in place.
The best part of a rate hold, is it guarantees that rate, but you can cancel it if you choose.

I still have a few Lenders offering below 3%, but majority are 3.09 to 3.29% and could increase over summer if bond market continues its upward climb.

FYI.
Cheers!

[Angee]

We just bought a house and got a 5 year fixed rate at 3.15% is that a good rate? I know nothing about mortgage rates.

[MortgageQueen]

It's an ok rate. Most broker's could have gotten you around 2.9%. Either way, if you compare historical rates, we're fortunate to have low rates compared to the rates in the 80's that were in the 20's! Can you imagine?

[tjthemanto]

We just bought a house and got a 5 year fixed rate at 3.15% is that a good rate? I know nothing about mortgage rates.

Its a decent rate ..a year or so from now when the rates start going up , you will be happy that you went for a fixed rate as opposed to variable.

Also check your pre payment options etc .

If you have a variable rate ..now might be a good time to lock in .

[jasperandchar]

I don't know of any banks that are offering 3% they are still 4% or higher, where can you get a 2.9% or there abouts from a bank?

[tjthemanto]

I don't know of any banks that are offering 3% they are still 4% or higher, where can you get a 2.9% or there abouts from a bank?

http://www.ratesupermarket.ca/mortgages/

This is a good site for comparing rates...some are around 2.9 %

I think ING Direct has 3.08 % for 5 yrs.

[Shwa Girl]

OP, if mortgage rates are going up, does this mean that the economy is getting better?
Thanks.

[MortgageQueen]

OP, if mortgage rates are going up, does this mean that the economy is getting better?
Thanks.

No, don't be deceived by the rates going up as a stronger economy. The U.S. is easing off of quantitive easing (buying securities) which is simply panicking bond holders into selling, thus artificially inflating the bond market (which controls our fixed rates)
Some think it is the market correcting itself. . .which may be true. . . . but what will the market "become"? I don't know.
You have to look at the world economy as well as the U.S. economy. All is extremely shaky.

Frankly, at this stage, I'd be looking at 10 yr. rates in all this uncertainty.

[tjthemanto]

OP, if mortgage rates are going up, does this mean that the economy is getting better?
Thanks.

I personally feel that some people will start losing their houses , when the rates go up .

These folks are living pay check to pay check and even a slight increase in the rates will send them over.

We won't have a US style sub-prime mortgage crash , but we are definitely in for a correction , especially in overheated markets like GTA and Vancouver.

I feel that houses will still be safe , but the condos ..not so much.

[MortgageQueen]

I personally feel that some people will start losing their houses , when the rates go up .

These folks are living pay check to pay check and even a slight increase in the rates will send them over.

We won't have a US style sub-prime mortgage crash , but we are definitely in for a correction , especially in overheated markets like GTA and Vancouver.

I feel that houses will still be safe , but the condos ..not so much.

If rates go up more than 2% than what many people may be forced to do is take a step backwards and take a higher amortization. . .which would be very unfortunate, but for those that buy at 95%. . .yes. . they could be in trouble. These people should be trying to pay down as fast as they can. . .at least until they are in a position of 80-85% equity.
If property prices actually drop- not increase, then this could be a real problem for these buyers.

[i_forget]

I have 7 months left in my current term. I am praying that in the next few months things stay lowish because if they do I am going to be jumping on a 10 yr rate. I have 10 years left in my amortization and I have a feeling rates are going to soar.

[tjthemanto]

I have 7 months left in my current term. I am praying that in the next few months things stay lowish because if they do I am going to be jumping on a 10 yr rate. I have 10 years left in my amortization and I have a feeling rates are going to soar.

After 7 months when your mortgage comes up or renewal , you can go for any amortization period you want , doesn't have to be 10 yrs ..but lower amortization period will be better as you will pay less interest.

[i_forget]

After 7 months when your mortgage comes up or renewal , you can go for any amortization period you want , doesn't have to be 10 yrs ..but lower amortization period will be better as you will pay less interest.

That is the plan. I want my house paid off before my oldest needs to go to post secondary, and I want to lock into these cheap rates, they won't get much lower.

[Retiree]

Tjthemanto, we haven't had a mortgage since 2008 but when we did, we were able to renew our mortgage 6 month prior to the renewal date, without penalty. Mortgage rates were on their way down so we renewed early at a variable rate, although we would have gone for a fixed rate, if the rates were headed upward. Have you checked to see if you can renew early? If rates are on their way up, and you can do that, it may be a viable option.

[MortgageQueen]

So the majority of rates have now jumped a half a percent higher. I have a few Lenders offering 3.04% for 30 day closings, but I don't expect that will even last much longer.